Firmly Neutral Nations Really Help U.s.

March 16, 1988|By Gary Marx , Sentinel Foreign Correspondent

PANAMA CITY, PANAMA — The Japanese club here was packed with businessmen seeking relief after a difficult day of selling products in a country with no money. Amid beer and drinks, they watched videos of Japanese singers and took turns belting out tunes on the Akasaka Club's small stage.

And they talked -- about how much they missed Japan, about the political crisis in Panama and how it has affected business, about Gen. Manuel Antonio Noriega and the U.S.-backed opposition seeking his ouster.

Not even among themselves, however, did they take sides.

''We are here for business, not politics,'' said Horacio Sanson, a Japanese who works for JETRO, a quasi-government organization that advises Japanese corporations about investment opportunities in Panama. ''We can't take a position for or against the government.''

Others agreed: Politics must never interfere with business.

The Japanese government's unwillingness to take action against Noriega in his showdown with the United States has been mirrored by most European and Latin American countries, even those closest to America.

The reasons are both political and economic, and they are to a point: Abide by the principle of non-intervention in the affairs of other countries or risk angering your international friends.

As the crisis grows, though, the neutrality of these countries is equal to a death sentence for the cash-starved Panamanian government led by Noriega.

With credit cut off from banks and international lending institutions and all Panamanian assets in the United States frozen, the only way the Noriega government can pay its workers is by borrowing money from foreign governments. ''We're talking to a lot of countries,'' said Panamanian Defense Forces spokesman Maj. Edgardo Lopez, who listed Spain, France and Japan as the primary candidates.

A top official at the Japanese Embassy said Tuesday his government would not lend Panama money. An official at the Spanish Embassy said Panama had made no official request for economic help. Although Spain has offered Noriega asylum under certain conditions if he steps down, it probably would turn down any request for money to support his rule, the official said.

There has been some speculation Noriega might obtain help from the rabidly anti-American ruler of Libya, Col. Moammar Gadhafi. At the Libyan People's Bureau here, an official said Tuesday he had ''nothing to say'' about it.

Noriega ''might be able to get a few million dollars here or there, but it won't do any good,'' said a Japanese diplomat who would not speak for attribution. ''They will never get the money needed to get the economy going.''

Opposition leaders are pleased by the apparent unwillingness of Japan and other countries to lend money to Panama. However, they have been frustrated by the generally weak response of Japan and other countries since Panama's political crisis broke in June.

Most Latin American nations have expressed support for Eric Delvalle, the president ousted by Noriega on Feb. 26 but recognized as the legitimate chief of state by the United States. Those countries, though, have done little actively to support U.S. attempts to force Noriega to step down. The region's most important international association -- the Organization of American States -- has refused to recognize the Delvalle government, though Cuba, Nicaragua and Paraguay are the only Latin American countries to back Noriega. ''We respect the right of each country to make their own internal policy,'' said Mexico's ambassador to Panama, Carlos Plank, in explaining why Mexico has refused to back opposition efforts to isolate Panama diplomatically.

Opposition leaders say the unwillingness of Mexico and other Latin American countries to act against Noriega has made it easier for more influential countries such as Japan to sit on the sidelines during the conflict. Japan's position is considered especially critical because of the country's small but powerful presence here.

Panama's 700 Japanese residents keep a low profile, living in the wealthy Punta Paitilla area of this city, but evidence of the country's economic presence is everywhere.

About 60 Japanese companies have headquarters in Panama, attracted by the Panama Canal, the country's huge banking system, and its tax-free trading zone in Colon.

Japanese banks hold as much as 40 percent of Panama's $5 billion in public debt. About 40 percent of the cargo that passes through the canal is either coming from or going to Japan.

Noriega has acknowledged Japan's deep financial interest in Panama by visiting Japan in each of the last three years.

Yet Japan has not used its economic clout to pressure Noriega to step aside. Japanese officials have refused to recognize the Delvalle government and have made no changes in their overall policy toward Panama, according to Kazushi Watanabe, first secretary at the Japanese Embassy.

''If there are actions taken against the Japanese government or Japanese businesses, we will respond. But we don't need to do that because our relations with Panama are good,'' he said, explaining why Japan is continuing its $4 million aid program.

''The U.S. would like to isolate Noriega, but that is not our policy,'' he added.

Such talk has apparently encouraged Panamanian officials to hope for some type of Japanese economic help. But even the most optimistic official acknowledges that turning talk into cash will not be easy.

''We have a very hard road ahead,'' said Mario Rognoni, Panama's minister of commerce and industry. ''Japan and some other countries know what it is like to be under the pressure of the United States.